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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Millions
3 Months Ended
May 01, 2020
May 03, 2019
Revenue:    
Revenue [1],[2] $ 2,734 $ 2,450 [3]
Operating expenses:    
Research and development [2],[4] 665 590 [3]
Sales and marketing [2],[4] 917 868 [3]
General and administrative [2],[4] 246 209 [3]
Realignment and loss on disposition [2],[4] 4 0 [3]
Operating income 418 354 [3]
Investment income 5 14 [3]
Interest expense (49) (34) [3]
Other income (expense), net (6) 17 [3]
Total income before income tax 368 351 [3]
Income tax benefit (18) (14) [3]
Net income 386 365 [3],[5],[6]
Less: Net loss attributable to non-controlling interests 0 (15) [3],[6]
Net income attributable to VMware, Inc. $ 386 $ 380 [3]
Net income per weighted-average share attributable to VMware, Inc. common stockholders, basic for Classes A and B (in USD per share) $ 0.92 $ 0.91 [3]
Net income per weighted-average share attributable to VMware, Inc. common stockholders, diluted for Classes A and B (in USD per share) $ 0.92 $ 0.89 [3]
Weighted-average shares, basic for Classes A and B (in shares) 418,383 417,636 [3]
Weighted-average shares, diluted for Classes A and B (in shares) 421,513 426,697 [3]
Cost of subscription and SaaS revenue    
Operating expenses:    
Stock-based compensation $ 4 $ 3
Cost of services revenue    
Operating expenses:    
Stock-based compensation 22 18
Research and development    
Operating expenses:    
Stock-based compensation 125 102
Sales and marketing    
Operating expenses:    
Stock-based compensation 72 63
General and administrative    
Operating expenses:    
Stock-based compensation 49 30
License    
Revenue:    
Revenue [1],[2] 660 646 [3]
Operating expenses:    
Cost of revenue [2],[4] 40 36 [3]
License | Dell    
Revenue:    
Revenue 323 279
Subscription and SaaS    
Revenue:    
Revenue [1],[2] 572 411 [3]
Operating expenses:    
Cost of revenue [2],[4] 126 94 [3]
Subscription and SaaS | Dell    
Revenue:    
Revenue 115 72
Services    
Revenue:    
Revenue [1],[2] 1,502 1,393 [3]
Operating expenses:    
Cost of revenue [2],[4] 318 299 [3]
Services | Dell    
Revenue:    
Revenue $ 444 $ 326
[1] (3) Includes related party revenue as follows (refer to Note C): License May 1, 2020: $323 million, May 3, 2019: $279 million, Subscription and SaaS May 1, 2020: $115 million, May 3, 2019: $72 million, Services May 1, 2020: $444 million, May 3, 2019: $326 million
[2] Effective the fourth quarter of fiscal 2020, revenue and cost recognized from subscription and SaaS offerings is being presented separately (refer to Note A).
[3] Adjusted to reflect the recast of prior period information due to the Pivotal Software, Inc. (“Pivotal”) acquisition in fiscal 2020, which was accounted for as a transaction between entities under common control (refer to Note A).
[4] (4) Includes stock-based compensation as follows: Cost of subscription and SaaS revenue May 1, 2020: $4 million, May 3, 2019: $3 million, Cost of services revenue May 1, 2020: $22 million, May 3, 2019: $18 million, Research and development May 1, 2020 $125 million, May 3, 2019: $102 million, Sales and marketing May 1, 2020: $72 million, May 3, 2019: $63 million, General and administrative May 1, 2020: $49 million, May 3, 2019: $30 million
[5] Adjusted to reflect the recast of prior period information due to the Pivotal acquisition in fiscal 2020, which was accounted for as a transaction between entities under common control (refer to Note A).
[6] Adjusted to reflect the recast of prior period information due to the Pivotal acquisition in fiscal 2020, which was accounted for as a transaction between entities under common control (refer to Note A).